"While the stain of the NYPD's false allegations against Ms. Pardee cannot be erased, this settlement is vindication for Ms. Pardee and will allow her to move forward with her life," said her lawyer, Brett Klein, a partner in the Brooklyn-based firm Leventhal & Klein, which specializes in civil-rights cases.

The city did not admit any fault or liability in reaching the settlement, according to a stipulation of dismissal recently filed in Brooklyn federal court.

A city Law Department spokeswoman confirmed the settlement, but declined further comment.

Ms. Pardee commenced the civil lawsuit earlier this year against the city and several police officers. She alleged false arrest, civil-rights violations and municipal liability and sought unspecified monetary damages.

Meanwhile, the Sanitation workers, including one supervisor, who were arrested in the criminal case, each previously pleaded guilty to criminal drug or criminal facilitation charges, the Advance reported.